Mortgage Loan Modification - How Do Mortgage Loan Modifications Work?

http://www.REIClub.com - How Do You Stop Your Home From Going Into Foreclosure? Here's How A Mortgage Loan Modification Works...

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on mortgage loan modifications.

What is a Mortgage Loan Modification?

- Re-negotiating one or more terms of a mortgage
- Reduce interest rate of the mortgage
- Change the mortgage product from adjustable to a fixed rate
- Extend the term of the mortgage
- Add delinquent payments to overall mortgage balance
- Potentially Helps Credit Score
- NOT easily granted, must be justified

Step 1: Eligiblity before contacting lender
- steady income
- positive budget/balance
- unemployment benefits do not qualify
- must own your primary residence
Tips before contacting lender:
- Survival budget - backup plan
- Prioritize your Mortgage over car/credit card payment

Step 2: Action Plan
- Hardship letter - explains why you fell behind, and how to manage it
- Reduce your expenses
- Possible downpayment to secure Loan Modification
- Manage finances - eliminate excess

Step 3: Fannie Mae or Freddie Mac?
- May Qualify for Making Home Affordable Program
- HAMP - Home Affordable Modification Program
- www.makinghomeaffordable.gov
- If niether, look for other loan modification programs

Step 4: Call Lender
- Mortgage Statement for Lender #
- New to process - Loss mitigation department
- Have questions, be assertive
- Have budget and expenses
- Straight to the point, no life stories

Requirement: (Text only)
- Income verification (2 current paystubs)
- A hardship letter
- A positive household budget
- Two current bank statements
- Most recent tax return (for up to two years possibly)
- IRS form 4506T
- IRS form 4506EZ

Step 5: Send Documentation
- Don't miss your deadlines
- Certify mail
- Follow-up - If lender says 2 weeks, call in 2 weeks

Step 6: Be Patient and Save money
- 90-180 days to complete
- Deferment of foreclosure proceedings
- Lenders and LMD need to communicate
- Enough for down payment

Remember, when you speak with your lender, keep your conversation focused on your real estate mortgage, your request for a mortgage loan modification, avoid complicated conversations about personal issues and be weary of foreclosure rescue scams. Mortgage loan modifications can be tedious process, but creates a possible solution to keeping your home from going into foreclosure.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.

http://www.youtube.com/watch?v=fWt9HgNAELM

Category:

Education

Tags:

• mortgage loan modification
• mortgage loan modifications
• real estate loan modification
• real estate loan modifications
• loan modifications
• loan modification
• real estate investment
• real estate investing
• invest in real estate
• real estate investments
• real estate investors
• real estate investor
• real estate investing clubs
• rei club
• reiclub

[MKHardeman]

Very helpful. Good information and quite straightforward about what to expect and what kind of questions to be prepared to address. Thank you. A timely and good service for so many in distress.

Blessings to you--

[bedbugsdc]

May i ask why you want to be a friend.......secondly you would have to take a vacation if i were to involve you in the mess i have with my property.....but hey.....tell me first question as friend request.....then maybe....sorry guy just dont need friends just to have them.....thanks for inquiry

[foreclosure1234]

Great stuff.

[nutier]

beautiful video ! you have good talent ; thank you for sharing .